After five straight days of gains, gold finally took a breather today and sold off quietly as the market calmed from the recent currency episode in China. Overnight, the People’s Bank of China Assistant Governor said that there is no further need for Renminbi depreciation following their decision to adjust the CNY-USD fixing earlier this week. With traders finally factoring in stabilization for the Chinese currency, volatility in the markets waned and gold’s safe haven appeal lost some of its luster. Strong retail sales figures in the US and a report from the World Gold Council citing gold demand dropped to a six year low in the second quarter didn’t do any favors for the yellow metal either today. Short term resistance seems to be entrenched at $1,130 while bids should materialize ahead of $1,110 on a move lower.
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